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Case #1: Review Introduction of Ordinance Amending City Code Chapter 3 and Repealing and Replacing Section 3.40 Entitled "City Funds". Finance Officer Hart stated that at the September 28, 1993 meeting, Staff presented several ordinances to amend Chapter 3 of the City Code to establish existing and new funds in the manner prescribed by the Charter and to establish, by ordinance, the policies and procedures effecfing various funds. City Attorney Goodrich has recommended repealing Chapter 3, Section 3.40 and replacing it with a single ordinance instead. Ms. Hart noted the major changes. She noted that the Economic Development Authority and a projected budget had been added. City Administrator Schroeder stated that in the 1993 and prior budgets, EDA expenditures were taken out of the general fund and tipping fee fund. He stated the salaries, benefits and operating costs associated with the promotion and management of economic development activities will be an EDA expenditure. Councilmember Hardin felt that if a Staff member is being paid from the EDA, all duties must be only be connected with economic development Mr. Schroeder suggested that his description of duties related to economic development may be somewhat broad. He added that the public improvement oversight duties will be removed from that position. Councilmember Beyer arrived. Mr. Schroeder stated this issue will be brought before the Personnel Committee for discussion. Motion by Councilmember Hardin and seconded by Councilmember Zimmerman to recommend City Council introduce an ordinance amending Chapter 3 known as the operations and administration chapter of City Code; an ordinance amending Chapter 3 and repealing and replacing Section 3.40 entitled "City Funds". Motion carded. Voting Yes: Councilmembers Hardin, Zimmerman and Peterson. Voting No: None. Abstain: Councilmember Beyer (because she was not present for the discussion). Absent: Mayor Gilbertson. Case #2: 1994 Proposed General Fund Budget Discussion Finance Officer Hart stated that in September, Council adopted a proposed tax levy for collection: in 1994 of $1,787,243 of which $955,811 was direct property tax in support of the 1994 Proposed General Fund Budget. This is the amount of property taxes that are necessary to fund the budget as it was presented at the meeting of September 13, 1993. She stated Staff has proposed an increase in general property taxes of $220,731 to support the 1994' General Fund Budget. Included in this increase is approximately $134,102 that results from our increase in the local taxable value. Ms. Hart noted that for payable 1994, the equalization aid has been eliminated and has been rolled into the HACA calculation. This results in a decrease in aids for 1994 of $59,365 and when combined with the increase in the Fiscal Disparity Transfer results in a net decrease of $48,409 in aids that the City will be receiving as compared to payable 1993. She suggested that a portion of this loss can be offset by the need to levy less in 1994 for debt service. This offset is $1,409 which leaves $47,000 in lost aids that are being replaced by general property taxes. The proposed amount for property taxes payable in 1994 includes the recovery of the $47,000 in lost aids. Ms. Hart explained that the recovery of aids, combined with the increase available from the tax capacity increase from the 1993 level, make up $181,102 of the proposed $220,731 increase for 1994. The remaining $39,629 is the cost equivalent of a full-time Finance Committee/October 12, 1993 Page 2 of 3